Mortgage rates have been near historic lows for some years now and are expected to increase slightly through 2017.
After the recession and house market crash, mortgages have been near historic lows. Only now after the hard-working eight years under President Obama are we able to see a light at the end of the tunnel. Mortgages are expected to increase only a tick in 2017, which is good news for home buyers across the nation, and so too for those in the business of selling homes. Chief economist for the Mortgage Bankers Association, Mike Fratantoni, is expecting a decline of 47 percent in refinance this year. What else faces the mortgage industry?
Low down payment mortgages?
Low down payment mortgages have been around for quite some time now. They have been done successfully, and they’ve been done with some catastrophic results. Saying they’re all bad would be incorrect because there are plenty that are done right and can really help first-time home buyers.
How will the rise in rates affect the mortgage business?
Experts predict this uptick will result in a very sharp reduction in refinance activity, but it won’t affect it as negatively as you may suspect. A strong job market and positive demographics are enough to outweigh any negatives from the increase in mortgage rates.
What’s the biggest issue facing the industry?
The transition from a refinance market to a purchase market is going to be the biggest issue. It is going to take a lot for lenders to re-calibrate their minds and business.
Mortgages will experience a change they have not seen in some time. If you want help with your mortgage, contact Elvin Wesley at Ranch & Coast Mortgage Group Inc. for all of your home loan needs throughout Solana Beach and San Diego County, as well as all of California.